{"id":34216,"date":"2022-06-07T12:34:09","date_gmt":"2022-06-07T12:34:09","guid":{"rendered":"https:\/\/tahrir2day.com\/news\/2022\/06\/07\/amid-crypto-turmoil-senators-propose-sweeping-oversight\/"},"modified":"2022-06-07T12:34:09","modified_gmt":"2022-06-07T12:34:09","slug":"amid-crypto-turmoil-senators-propose-sweeping-oversight","status":"publish","type":"post","link":"https:\/\/tahrir2day.com\/news\/2022\/06\/07\/amid-crypto-turmoil-senators-propose-sweeping-oversight\/","title":{"rendered":"Amid crypto turmoil, senators propose sweeping oversight"},"content":{"rendered":"
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A pair of bipartisan senators have tabled what would be the broadest legislative proposal to regulate cryptocurrencies and other digital assets<\/span>after a series of high-profile busts and failures.<\/p>\n

It is unclear, however, whether the bill proposed by Sen. Kirsten Gillibrand, DN.Y., and Cynthia Lummis, R-Wyo., Could remove obstacles to Congress, especially at a time of increasing partisanship before the midterm elections. The bill also comes as cryptocurrency advocates have become the largest (and most cost-free) players in Washington.<\/p>\n

The bill introduced on Tuesday, called the Responsible Financial Innovation Act, proposes legal definitions of digital assets and virtual currencies; would require the IRS to adopt guidance on the acceptance of digital assets and the charitable contributions of traders; and would make a distinction between digital assets that are commodities or securities, which has not been done.<\/p>\n

The bill “creates regulatory clarity for agencies in charge of overseeing digital asset markets, provides a strong, personalized regulatory framework for stable currencies, and integrates digital assets into our existing tax and banking laws.” said Lummis in an emailed statement. Stablecoins are a type of cryptocurrency linked to a specific value, usually the US dollar, another currency or gold. <\/p>\n

Lummis has been a vocal advocate of cryptocurrency development and has invested between $ 150,002 and $ 350,000 in bitcoins, according to its financial disclosure.<\/p>\n

Legislation imposes disclosure requirements on digital asset companies to ensure that consumers can make informed decisions, delimits the agency’s responsibilities for various digital assets, such as the jurisdiction of the Commission on the Trading of Commodity Futures on Bitcoin , and requires a study on the energy consumption of digital assets, among many other proposals. .<\/p>\n

The bill comes at a tumultuous time for cryptocurrencies, including the May merger of stablecoin and luna terraUSD<\/span>the currency intended to buy and sell assets, which were quoted at a value of less than one tenth of a thousandth of a cent. <\/p>\n

Gillibrand said the bill establishes “a regulatory framework that stimulates innovation, develops clear standards, defines appropriate jurisdictional boundaries, and protects consumers.”<\/p>\n

These advances have led legislators on both sides of the aisle to support legislation that controls digital assets more closely. <\/p>\n

And the crypto lobby has followed suit. This year, for the first time, industry executives have done so it flooded money in Congress races<\/span>spending $ 20 million, according to records and interviews.<\/p>\n

Cryptocurrencies have their supporters in Congress. Senator Cory Booker, DN.J., told the DC Blockchain Summit in Washington last month that he is drawn to “the exciting potential democratizing effect that can result from creating broader avenues of opportunity for marginalized communities “. <\/p>\n

Despite the risks, surveys show that approximately 16% of American adults, or 40 million people, have invested in cryptocurrencies. And 43% of men between the ages of 18 and 29 have invested money in cryptocurrency.<\/p>\n

African Americans are also more likely to invest in cryptocurrencies than white consumers. <\/p>\n

President Joe Biden signed an executive order<\/span> In March, instant the Federal Reserve<\/span> to explore whether the central bank should create its own digital currency and directed federal agencies, including the Treasury Department, to study the impact of cryptocurrency on financial stability and national security.<\/p>\n

Treasury Secretary Janet Yellen said in an April speech at the American University that more government regulations are needed to control the proliferation of cryptocurrencies and prevent fraudulent or illicit transactions.<\/p>\n

“We have a strong interest in ensuring that innovation does not lead to fragmentation of international payment architectures,” he said, adding that the Treasury Department will work with the White House and other agencies to develop reports and recommendations on digital currencies. .<\/p>\n

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Associated Press writer Ken Sweet in New York contributed to this report.<\/p>\n

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